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Campus Advantage Closes On $100 Million Joint Venture

Texas Business reports:  AUSTIN—Campus Advantage, a student housing company, receinlty closed its acquisition of two properties, a $100 million joint venture with one of the nation's largest pension funds.

The first acquisition, Hawks Ridge, formerly The Lodge, in Iowa City, Iowa, serves the students of the University of Iowa. 

The property contains 201 units and 561 beds and is 100% occupied.  Hawks Ridge is the only large-scale purpose-built student housing in the market, and the University currently master leases 174 beds.

The second acquisition, Crimson Student Living, formerly Sterling Crimson, in Tuscaloosa, Alabama, serves the students of the University of Alabama and Stillman College. 

The property is in its first year of operations, opening in August of 2011, and is located in close proximity to campus.  The Class A property contains 316 units and 700 beds and is 95% occupied.

The two acquisitions officially placed the remaining equity in a $100 million joint venture with one of the nation's largest pension funds.  The joint venture was created in 2007 to source and acquire high-quality student housing assets in close proximity to leading universities nationwide.

Currently, Campus Advantage has acquired seven properties, totaling 1,540 units and 4,749 beds in Texas, Florida, Missouri, Kansas, Iowa and Alabama.  The portfolio has an average occupancy of more than 99%.

Debt financing for the joint venture's acquisition was sourced through Berkadia Commercial Mortgage, utilizing both agency and life insurance company lenders.

"We are excited to add these two communities to a strong portfolio of leading student housing communities nationwide," said Campus Advantage executive Michael Orsak in a prepared statement. “Our joint venture with one of the nation's largest pension funds has been very successful and we look forward to a long-term relationship.”

Campus Advantage currently manages nearly 30,000 beds at 50 communities in 20 states.

 Campus Advantage is an Austin-based real estate firm that offers higher education management, development, acquisition and consulting services.